Existing basic wireless communication services predominantly carry two-way voice traffic and, to a lesser extent, data traffic. Service providers of wireless communication services may contemplate providing enhanced wireless communications services that require additional bandwidth above and beyond that of existing basic wireless communications services. Enhanced wireless communications services may include providing mobile Internet access to mobile subscribers of a wireless communications system at higher data rates than are possible with basic wireless communications services.
The historical voice traffic patterns of existing basic wireless communications services are only of limited use in predicting the financial merits of an investment in enhanced wireless infrastructure. On one hand, certain enhanced wireless communications services may be competitive with two-way voice communications service, where the ultimate goal of the communications may be accomplished efficiently by either voice or data transmissions. On the other hand, enhanced wireless communications services may provide new or greater functionality for data-intensive applications that may find demand among a limited audience with specific needs. For example, enhanced wireless communications may include providing an employee with access to an employer's computer on a remote and mobile basis.
The service provider may face the task of deciding what enhanced wireless communication services to offer and whether or not to offer any wireless enhanced data services on a market-by-market basis. The requisite infrastructure to offer enhanced wireless communications service generally requires a substantial investment of capital. Without a prudent economic analysis, the service provider may encounter financial problems and unwanted market risk in offering enhanced wireless communication service. Thus, a need exists for a financial analysis system that facilitates an evaluation of the financial aspects of investing in wireless data infrastructure for delivering one or more enhanced wireless data services.
Basic wireless communications services predominately include voice communications services. Voice communications may be carried by analog modulated signals or digitally modulated electromagnetic signals. GSM (Global System for Mobile Communications), AMPS (Advanced Mobile Phone System), CDMA (Code-Division Multiple Access) and TDMA (Time-Division Multiple Access) support basic wireless communications services.
Basic wireless communications service may further include alphanumeric paging, short data messaging, or similar limited data transmissions that are integrally offered with two-way voice communications. For example, GSM supports short-messaging service (SMS) and access to the Internet via a modem. Short messaging service allows alphanumeric messages to be sent to a GSM-capable subscriber unit. Cellular digital packet data (CDPD) may be used to transmit short data messages over analog cellular systems, such as AMPS.
Basic wireless communications services support a lesser data transmission rate, a lesser maximum bandwidth, or a lesser maximum data throughput between a mobile subscriber station and a base station than does an enhanced wireless communications service. For example, second generation CDMA systems support data transmission of up to approximately 14 kbps. Enhanced wireless communications services can support data-intensive applications in a more rapid or responsive manner than otherwise possible with basic wireless communications services. Enhanced wireless communications service includes wireless data applications and wireless Internet services. General Packet Radio Service (GPRS) and Universal Mobile Telecommunications System (UMTS) are examples of enhanced wireless data services.
GPRS is a communications service that supports data-intensive applications over a GSM system. In one configuration, a GPRS subscriber may be provided with a channel that provides a theoretical maximum throughput of approximately 170 kilobits per second (kbps). Thus, service providers may consider GPRS a suitable technology for offering Internet access, remote access to central computing facilities, delivery of multi-media presentations, delivery of e-mails with substantial graphical or audio-visual content, or other data-intensive applications that consume greater bandwidth than voice communications do.
UMTS is a communications service that supports data-intensive applications over a CDMA system. In one configuration, a mobile UMTS subscriber may be provided with a channel that provides a theoretical maximum throughput of approximately 300 kbps, whereas a stationary UMTS subscriber may be provided with a theoretical maximum throughput of approximately 2 megabits per second (Mbps). UMTS is capable of supporting more elaborate communications services than those offered by GPRS including streaming content applications, which include real-time video monitoring, and music/multimedia delivery on-demand. Further, UMTS may support video-conferencing applications because of the greater available bandwidth offered by UMTS. UMTS may be considered a later-version of enhanced wireless communications services than GPRS because commercial deployment of UMTS is expected to follow the commercial deployment of GPRS.
The service provider may face many complex business decisions related to the offering of enhanced wireless communications services. Service providers may need to upgrade or purchase additional telecommunications infrastructure to offer enhanced wireless communications services or a later version of enhanced wireless communications services. For example, the service providers may purchase additional base stations that support enhanced wireless communications services or upgrade existing base stations. Service providers may need to purchase new telecommunications switches for packet switching. Many existing subscriber units used for basic wireless communications services presently do not support enhanced wireless communications services. Accordingly, service providers may need to market the sales of wireless communications devices (e.g., mobile phones) that support enhanced wireless communications services. Thus, a need exists for a financial analysis system that provides a financial analysis for tailoring a new or expanded offering of enhanced wireless data services in accordance with informed business judgment.